ED fails to respond to notice, SC gives bail to accused in Rs 6,000 crore ponzi scam

NEW DELHI: Sending a clear message to investigating agencies that court cannot keep waiting for their reply and adjourning the case to grant them more time to respond, Supreme Court (SC) on Friday granted bail to an accused in Rs 6,000 crore ponzi scam as Enforcement Directorate (ED) failed to file a response.

A bench of Justices Abhay S Oka and Augustine George Masih refused to grant ED more time to file response on the plea of M Muthukumar, an accused in a Rs 6,000 crore ponzi scam. The court said sufficient time was given to the agency.

In this case, notice was issued by the court on Sept 6 and the agency was directed to file a response by Oct 21, granting it 45 days to respond.

The court also granted interim protection to the accused on that day.

When the matter was taken on in Oct, the agency sought more time. Allowing its plea, the court granted more time and directed it to file a response by Nov 29.

As the case was called for hearing on Friday, ED counsel told the court that its reply was almost ready and sought two more days' time to file it.

The court, however, rejected the plea of the agency. "Time was sought earlier by the respondent and it was granted. The respondent was given more than sufficient time to file a response. Appeal is allowed and the interim order is made absolute," the bench said.

Muthukumar had approached the apex court through his lawyer Kiran Kumar Patra after his plea for anticipatory bail was rejected twice by the Madras high court.

Granting relief to him, the apex court noted that the accused had been cooperating in the investigation and also providing all documents sought by ED in the case after interim protection was granted to him.

In this case, LNS International Financial Services Ltd and its various directors were alleged to have cheated the general public under the guise of investing money in the stock market. ED alleged that the petitioner had been benefited from proceeds of the crime.

After registration of FIR, police had conducted raids at premises of the accused persons and found that over a lakh people had invested amounts to the tune of Rs 6,000 crore in a ponzi scheme run by the company.

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